The Amendments To The Law On Credit Institutions

Original Language Title: Grozījumi Kredītiestāžu likumā

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The Saeima has adopted and the President promulgated the following laws: the law of credit institutions to make the law of credit institutions (the Parliament of the Republic of Latvia and the Cabinet of Ministers rapporteur, 1995, nr. 23; 1996, 9, 14, 23 no; 1997, no. 23; 1998; 2000, no. 13, no. 13; 2002, 10, 23; 2003, nr. 14. No; 2004, 2, 12, no. 23; Latvian journal, 2005, 92 no) the following amendments: article 1.1: Add to point 7 with "f" and "g" at the bottom of the paragraph by the following: "(f) the reduction of the investment) insurance companies, reinsurers and insurance holding company share capital in which the credit institution directly or indirectly owns 20% or more of the share capital or voting shares, g) investments to insurance companies, reinsurers and insurance holding company for subordinated capital and, in accordance with the financial and capital market Commission of the laws, regulations and Ordinances — other financial instruments;"
make 20 and 21 by the following: "20) financial institution: a company set up to provide one or more financial services (except deposits and other repayable funds attraction) or for participation in the share capital of other companies;
21 financial holding company): financial institution, which is not a mixed financial holding company and the subsidiaries of which are either exclusively or mainly credit institutions or financial institutions, at least one of which is a bank; "
Express 43 as follows: "43) mixed holding company, parent company, other than a credit institution, financial holding company or a mixed financial holding company, but the subsidiary from at least one is a bank;";
Add to article 55 as follows: "55) a mixed financial holding company, the parent company, not a bank, insurance company or investment company, which together with its subsidiaries, at least one of which is established in a member bank, insurance company or investment company, and other societies, constitutes a financial conglomerate."
2. To make article 6 the second subparagraph by the following: "(2) an electronic money institution which under this Act is not required to receive a license (permission) to initiate their activity is not bound by this law, 12, 10.1 12.2, 12.3, 13, 16, 17, 19, 20, 21, 24, 25, 26, 28, 29, 31, 32, 30.1, 33, 33.1, 35, 38, 39, 40, 42, 43, 44, 50.3, 50.4, 50.5, 50.2, 50.6, 50.7 , 55, 57, 58, 59 and article VI, VII, VIII, IX, X, XI, XII, XIII, XIV and XVInodaļ. "
3.12.2 the article: Add to the article with the new sixth as follows: "(6) the financial and capital market Commission prohibit a credit institution to open a branch office in the Member State where the credit institution is suitable for extended monitoring procedure.";
to supplement the article with the seventh paragraph as follows: "(6) a credit institution branch is created and launched the operation in the Member State where the credit institution has received the credit institutions of the Member State concerned, the supervisory organ or the expiration of two months from the date of the relevant Member State's supervisory authorities of credit institutions has received the notification referred to in the fourth subparagraph.";
consider the sixth article of the eighth;
to supplement the article with the ninth subparagraph by the following: "(9) in the sixth paragraph of this article, that financial and capital market Commission issued administrative appeal Act shall not suspend its execution."
4. Express article 16, paragraph 2 of the first paragraph of point "a" the following: "(a)) duration of not less than three financial years (this rule does not apply to financial and capital market participants that foreign country, which is licensed to a member to the World Trade Organisation)".
5. Express 19.1 article as follows: "article 19.1. (1) the financial and capital market Commission consults a management authority of the Member State concerned before a license (permission) issue such credit institution encountered: 1) which is registered in a Member State of credit institutions, insurance companies or investment brokerage firm subsidiary company;
2) which is the subsidiary of the parent company, another subsidiary of which is established in a Member State of the credit institution, insurance company or investment company;
3) controlled by a natural or legal person who controls a credit institution established in another Member State, insurance company or investment company.
(2) the financial and capital market Commission before issuing the licence (permit), as well as licensed credit institution in the course of supervision of a management authority of the Member State concerned require the information and evaluate the suitability of the shareholders of a credit institution and their credit reputation and experience of managers involved in other businesses of the group, which will be included in the credit institution encountered. "
6. Supplement article 20 with the second part as follows: "(2) the provisions of this article for the duration of the credit institution are not attributable to the credit institution registered in a foreign country that is a member of the World Trade Organization."
7. Turn article 23.
8. Express article 25, second subparagraph by the following: "(2) a credit institution or, in the case of the Council of the society Inspector — it is the responsibility of the general meeting or by the financial and capital market Commission's request to immediately withdraw from the post of the first paragraph of this article, if they may extend the application of the first paragraph of article 1, paragraphs 2 or 3."
9.27.1 article: make the first paragraph by the following: "(1) the financial and capital market Commission not later than 30 days from the date of the decision to issue a license (permission) for the operation of the credit institution, communicate it to the European Commission.";
to make the fourth subparagraph by the following: "(4) the financial and capital market Commission not later than 30 days from the date of the decision: 1) licenses (permissions) for the operation of the credit institution granting the credit institution over which controls, directly or indirectly, exercise a foreign merchant, communicate it to the European Commission and the other Member States ' supervisory authorities of credit institutions. In a statement the European Commission indicates the structure of the Group of the credit institution;

2) significant acquisitions in the credit institution shall notify the European Commission and the other Member States ' authorities supervision of credit institutions, provided that such participation is a significant winner foreign merchants and getting significant participation, credit institution becomes a subsidiary of a foreign merchant. In a statement the European Commission indicates the structure of the Group of the credit institution;
3) licenses (permissions) for the operation of the credit institution granting the foreign branch of a credit institution shall notify the European Commission and the European Banking Committee. "
10. Express article 30.1 as follows: "article 30.1. Considering article 29 of this law, first and second parts of the above statements, financial and capital market Commission consults a management authority of the Member State concerned, if the proposed acquirer is essential in the relevant Member State registered credit institution, insurance company, investment firm or a credit institution established in a Member State, insurance companies or investment companies, parent company or person controlling a credit institution established in a Member State, insurance company or investment company and if, the person acquiring or increasing the qualifying holding, the bank becomes that person's subsidiary or come under its control. "
11. To supplement the law with article 36.1 as follows: "article 36.1. If the bank buys the other credit institutions, investment firms, other financial institutions, insurance companies or to have pārapdroš shares (shares) to hold them temporarily due to transactions of the financial assistance that is designed to reorganize and to restore solvency to the public, Financial and capital market Commission may authorize the bank to calculate own funds without taking account of this law, article 1, point 7, "d", "e", "f" and "g" requirements. "
12. Express article 44 the first part as follows: "(1) the Bank's significant participation in the company's share capital, which is not a credit institution, financial institution, insurance company or pārapdr the šinātāj, shall not exceed 15procent of the bank's equity."
13. Express article 45 as follows: "article 45. The Bank's significant participation in the total amount of the share capital of the company which are not credit institutions, financial institutions, insurance companies or the reinsurer may not exceed 60procent of the bank's equity. "
14. Express article 47, the first paragraph by the following: "(1) the Bank's investments in movable and immovable property, as well as to the participation of other companies (other than credit institutions, financial institutions, insurance companies and reinsurers) share capital the total may not exceed the bank's equity."
15. in article 50.5: Supplement to the second part of the article as follows: "(2) the financial holding company registered in Latvia's Chairman of the Board and Board members must comply with article 24 of this law, first paragraph 1., 2., 3., 4., 5., and the second paragraph of point requirements. In Latvia registered a financial holding company Chairman of the Board and Board members can be persons who may be subject to this law, article 25, first paragraph 1, 2 or 3. ";
believe the current text of the first part of the article.
16. the express article 50.6 and 50.7 by the following: ' article 50.6. (1) if the bank is the parent company of a foreign credit institution or a financial holding company, financial and capital market Commission, before a decision on the bank's consolidated supervision, on its own initiative or at the request of the bank's parent company established in a Member State or by a credit institution, insurance company or investment company, that is, at the request of the bank subsidiary, consult with the parties to the supervisory authorities of the Member States and assess whether the bank is subject to the requirements laid down in the Member States of equivalent supervision on the basis of consolidated financial statements.
(2) before making a decision on the financial and capital market Commission takes into account the guidelines of the European Banking Committee, assessing whether the relevant foreign supervisory authority consolidated supervision comply with the requirements of consolidated supervision in the Member States.
(3) If a foreign supervisory authority consolidated supervision does not meet the requirements laid down in the Member States, the financial and capital market Commission carried out the bank, whose parent company is a foreign credit institution or a financial holding company, supervision on a consolidated basis in accordance with the requirements of the law.
Article 50.7. (1) a credit institution which is the parent company of a mixed holding company, is obliged to provide the financial and capital market Commission information on transactions, which it made with the parent company and its subsidiaries (except for high risk transactions, the information on which the financial and capital market Commission under other legislation).
(2) a credit institution must establish appropriate risk management and internal control system, including the need to develop appropriate accounting procedures in order to properly identify, assess and control the intra-group transactions.
(3) financial and capital market Commission has the right to determine the internal transaction limitations, if the intra-group transactions of a credit institution's financial position. "
17. the express 54. the third paragraph of article as follows: "(3) a credit institution financial and capital market Commission duly provided financial and capital market Commission information on credit institutions Council or the composition of the Management Board, the shareholders and the new financial services."
18. To supplement the law with article 59.1 the following: 59.1 "article. (1) in the case of Reorganization for each institution involved in reorganization under the commercial law article of the 345 is the obligation to publish the newspaper "journal" that is a decision on the reorganization, and send notice of the reorganization of all known creditors that pending commercial decision referred to in article 343 of the acceptance of a reorganisation had claims on the credit institution, the said statement may not send to creditors whose claims have arisen, of national credit institution providing financial services to those creditors.
(2) the first paragraph of this article shall not apply to reorganisation measures, which are carried out in accordance with Chapter XVI of this law. "
19. Supplement article 62 with the sixth part of the following:

"(6) the particulars of the client, his financial instruments accounts and cash accounts, related to the settlement of financial instruments, as well as for the transactions carried out on regulated market financial instruments in the nature of a regulated market the Organizer upon his request, if this information is necessary to market the Organizer to ensure that insider trading and market manipulation for monitoring the prevention functions."
20. Replace article 102, paragraph 2, the figure "10" with the number "8".
21. Replace article 128 in the second part of the word "surrender" with the word "cancellation".
22. Article 129: replacing the first paragraph, the word "reference" with the word "cancelled";
replace the second paragraph, the word "undo" with the word "cancellation";
replace the third paragraph, the word "undo" with the word "void".
23. the express article 199 introductory paragraph by the following: "other actions that result in a breach of this Act or the regulations thereunder or directly applicable to the institutions of the European Union issued the legislation:".
24. Add to the informative reference to directives of the European Union with point 6 and 7 by the following: ' 6) the European Parliament and of the Council of 16 December 2002, Directive 2002/87/EC on the supplementary supervision of credit institutions, insurance took a tions and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC as well as the directives of the European Parliament and of the Council 98/78/EC and 2000/12/EC;
7) the European Parliament and of the Council of 9 March 2005 of Directive 2005/1/EC amending Council Directives 73/239/EEC, 85/611/EEC, 91/675/EEC, 92/49/EEC and 93/6/EEC and European Parliament and Council Directive 94/19/EC, 98/78/EC, 2000/12/EC, 2001/34/EC, 2002/83/EC and 2002/87/EC so as to establish a new financial services committee organisational structure. "
The law will enter into force simultaneously with the financial conglomerate.
The law adopted by the Parliament of 9 June 2005.
The President of the Parliament instead of the President i. Otter in Riga on 28 June 2005 editorial Note: the law shall enter into force by July 12, 2005.